Real Estate business and LLC...

[Cruzzze]

Does anybody use an LLC for their RE business, or an S corp?

[soupersonic]

Yep, LLC here

[Cruzzze]

Is it better than an S Corp? Doesn't an LLC still have to pay the self employment tax?

[Tequila-John]

i am an LLC and filed as an S for taxes. My tax guy ****ing rocks

[Cruzzze]

How in the hell does that work? Now I'm really confused.......

[BrendellaJet]

i am an LLC and filed as an S for taxes. My tax guy ****ing rocks
Thats the way to do it.
S corp for tax is electing to be taxed as a partnership (for all intents). All items of income & expense pass through to the shareholders, corportion pays little tax.(CA franchise tax is about it, however there are some penalizing corporate level taxes if you do not plan accordingly.)
LLC is nice because you dont have to file corporate minutes. If you have an S corp (or C corp) and dont record minutes get them caught up. That is one way your corporate veil can be pierced exposing you to huge liabilities.
One word of caution though: if your exit plan is less than 10 years(or disposal of any asset for that matter) and you were a C corp initially, think long & hard about the S conversion. Built in gains tax is a biatch!

[essexjet]

LLC here, but will be filling S Corp on taxes

[Tequila-John]

LLC here, but will be filling S Corp on taxes

[cab_01]

S corp. According to mytax guy it is better than an LLC. No self employment tax on the draw and i get to lease MY car to the company for ME to use.